Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

19 December 2008 / by Rebecca Sargent

The Bank of Japan slashed interest rates by 20 basis points to just 0.1 per cent yesterday in attempts to prevent a deeper recession.

The drastic measure mirrors what is going on across the globe; earlier this week the US Federal Reserve cut its rates to between 0 and 0.25 per cent, while in the UK the Bank of England has brought rates down from 4.5 per cent to two per cent in the space of just two months.

However, minutes from the Bank of England's Monetary Policy Committee's December meeting hint at further interest rate cuts for the UK in January, and even considered a higher cut for December, but said that "A number of arguments were, however, advanced against a larger cut."

The MPC members voted unanimously for a one per cent cut for fears that, "an unexpectedly large cut could undermine confidence in the economy more widely."

Worldwide interest rate cuts to such low levels are, according to experts, an indication of what is in store as the UK and US enter a recession and the rest of the world looks set to follow suit within the next year.

France is one such country that looks set for recession as the country's national statistics agency, Insee, has revealed that it is unlikely to escape unscathed next year, as the French economy shrank by 0.8 per cent in the last three months of 2008.

But it is not just France that Insee has reported as having a shrinking economy, in quarter three of 2008 its statistics show Japan's economy fell by -0.5 per cent, the UK's by the same amount, and the Eurozone's by -0.2%.

Meanwhile, as the worldwide economy continues to decline, experts are predicting that the UK will follow the drastic examples set by Japan and the US and slash interest rates to historical lows.